Bilimoria, who was recently named in the The Times 'People to be Watched in 2003' list, said apart from setting up a brewery, Cobra beer would soon expand its presence from Mumbai, Pune, Goa and Delhi to other cities across India.
''Currently we are importing the Cobra beer into the Indian market and because of the astronomical 400 per cent duties, it is expensive and currently popular only among a niche segment,'' the Hyderabad-born Bilimoria told UNI in an exclusive interview.
''This is the reason we plan to manufacture the beer in India itself so that it can be sold as per the prices existing in the Indian market,'' he said.
Bilimoria, whose Cobra Beer has become one of the fastest growing beer brands in the UK and was ranked in the 1999 Sunday Times Virgin Atlantic Fast Track 100, said the brand has a current retail value turnover approaching £50 million annually and is exported to around 30 countries.
''The Cobra is less gassy and compliments Indian cuisine. Currently, it is sold in over 5,000 Indian restaurants throughout the United Kingdom and we expect a similar response from the Indian market once it is priced adequately,'' he said.
Bilimoria, who had a meeting with Commerce and Industry Minister Arun Shourie as well as Andhra Pradesh Chief Minister Chandrababu Naidu, said despite the huge potential, the tax structure in India was a major obstacle in the growth of the beer market.
''The 400 per cent duty is a sure dampener and too high. In South Africa, it is as low as five per cent and similar figures in other countries. I believe duty in the range of 20-25 per cent would be adequate and give the much-needed boost to the beer market,'' Bilimoria said.
He said during his interaction with Indian government officials he was assured that the high duties would be brought down, though gradually and in phases.
On plans of setting up a brewery, he said his company was exploring three options.
''The best deal for us would be to set up our own brewery from the scratch. But for that a lot of government clearances are required and that is the reason we are exploring other options as well which include collaborating with another brewery or buy out an existing one,'' he said.
Bilimoria--whose brand was awarded gold for two successive years at the 2001 and 2002 Monde Selection, World Quality Awards in Paris--said initially he planned to set up a 200,000 hectare litre brewery, which would approximately require an investment of £10 million.
''We plan to start this as soon as possible. If given the right atmosphere, we are not even averse to setting up ten breweries of the same capacity,'' he added.
He said by April this year, his beer would be available in other cities like Hyderabad, Bangalore, Chennai, Cochin, Kolkata and Chandigarh.
Talking about the per capita consumption of beer in India, he said it was a paltry half litre per person per year in contrast to 20 litres in China, 100 litres in Britain and 165 litres in the Czech Republic.
''To give a boost to this, the Indian government has to open its market and make the duty structure realistic. Also, it should adopt an open policy and make a single-window system available for businessmen planning to invest in the country,'' he said.
Bilimoria, who in 1990 exported beer to Britain after manufacturing it in a brewery in Bangalore, shifted base to the UK in 1997 and has since seen phenomenal growth.
UNI
